Exhibit 99.1
CONTACT:
MIKE EL-HILLOW
EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER
ADVANCED ENERGY INDUSTRIES, INC.
970-407-6570
MIKE.EL-HILLOW@AEI.COM
FOR IMMEDIATE RELEASE
ADVANCED ENERGY REPORTS FIRST QUARTER 2003 RESULTS
FORT COLLINS, COLORADO (APRIL 17, 2003)-Advanced Energy Industries, Inc.
(Nasdaq: AEIS) today reported financial results for the first quarter ended
March 31, 2003. Advanced Energy offers a comprehensive suite of process-centered
solutions critical to the production of semiconductors, flat panel displays,
data storage products, architectural glass, laser, medical and other advanced
product applications.
For the 2003 first quarter, revenues were $56.2 million, up 31 percent from
$42.9 million for the first quarter of 2002 and down 2 percent from $57.4
million for the fourth quarter of 2002.
Net loss for the first quarter of 2003 was $8.6 million or $0.27 per share,
compared to a net loss of $8.7 million in the first quarter of 2002, or $0.27
per share. This compares to fourth quarter 2002 net loss of $22.0 million, or
$0.68 per share. Both the first quarter of 2003 and the fourth quarter of 2002
had charges associated with the operational changes that the Company has
implemented in response to reduced market demands. In the first quarter of 2003,
these charges, net of tax, totaled $1.1 million or $0.04 per share, principally
attributed to restructuring charges, and $14.2 million in the fourth quarter of
2002 or $0.44 per share. Excluding these charges, the 2003 first quarter net
loss would have been $7.5 million or $0.23 per share and the fourth quarter 2002
net loss would have been $7.8 million or $0.24 per share.
Doug Schatz, chairman and chief executive officer, said, "As we expected, the
first quarter of 2003 presented continued sluggish demand in our end markets,
especially the semiconductor capital equipment
sector. Our order pattern has remained essentially linear since late in 2002 and
there are no indications that this will change in the near term. While the
industry has remained suppressed, we continue to find ways to increase our
addressable markets. We have done this by continuing our focus on the
development of products and technologies that leverage the application value of
the plasma for our customers. By focusing our research and development on our
core product groups, we believe we can realize more high-value revenue
possibilities, continue to develop the most reliable products at the lowest
possible cost and have the quickest time from concept to commercialization."
"Based on information we have today, we anticipate second quarter revenue in the
$56 to $60 million range and a loss per share range of $0.18 to $0.21 that
reflects continued improvements from our operational changes", said Mr. Schatz.
FIRST QUARTER CONFERENCE CALL
Management will host a conference call today, Thursday, April 17, 2003 at 9:00
am Eastern time to discuss Advanced Energy's financial results. You may access
this conference call by dialing 888-713-4717. International callers may access
the call by dialing 706-679-7720. For a replay of this teleconference, please
call 706-645-9291, enter the passcode 8359076. The replay will be available
through Thursday, April 24, 2003. There will also be a webcast available at
www.advanced-energy.com.
ABOUT ADVANCED ENERGY
Advanced Energy is a global leader in the development and support of
process-centered technologies critical to plasma-based manufacturing processes
used in the production of semiconductors, flat panel displays, data storage
products, compact discs, digital video discs, architectural glass, laser,
medical and other advanced product applications.
Leveraging a diverse product portfolio and technology leadership, AE creates
solutions that maximize process impact, improve productivity and lower cost of
ownership for its customers. This portfolio includes a comprehensive line of
technology solutions in power, flow and thermal management, plasma and ion beam
sources, and integrated process monitoring and control for original equipment
manufacturers (OEMs) and end-users around the world.
AE operates globally from regional centers in North America, Asia and Europe,
offering global sales and support through direct offices, representatives and
distributors. Founded in 1981, AE is a publicly-held company traded on the
Nasdaq National Market under the symbol AEIS. For more information, please visit
our corporate website: www.advanced-energy.com.
SAFE HARBOR STATEMENT
This press release contains certain forward-looking statements, including Mr.
Schatz' expectations with respect to Advanced Energy's financial results for the
second quarter of 2003. Forward-looking statements are subject to known and
unknown risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such statements. Such risks and
uncertainties include, but are not limited to: the volatility and cyclicality of
the semiconductor and semiconductor capital equipment industries, Advanced
Energy's ongoing ability to develop new products in a highly competitive
industry characterized by increasingly rapid technological changes, Advanced
Energy's ability to successfully integrate acquired companies' operations, and
other risks described in Advanced Energy's Form 10-K, Forms 10-Q and other
reports and statements, as filed with the Securities and Exchange Commission.
These reports and statements are available on the SEC's website at www.sec.gov.
Copies may also be obtained from Advanced Energy's website at
www.advanced-energy.com or contacting Advanced Energy's investor relations at
970-221-4670. The company assumes no obligation to update the information in
this press release.
###
CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
(IN THOUSANDS EXCEPT PER SHARE DATA)
Quarter Ended March 31, Quarter Ended
------------------------- December 31,
2003 2002 2002
-------- -------- -------------
Sales $ 56,158 $ 42,887 $ 57,444
Cost of sales 38,208 29,513 52,970
-------- -------- --------
Gross profit 17,950 13,374 4,474
Operating expenses:
Research and development 13,367 11,248 12,975
Sales and marketing 8,330 6,751 9,739
General and administrative 5,629 6,798 9,460
Other operating expenses -- -- 1,904
Restructuring charges 1,509 -- 5,840
-------- -------- --------
Total operating expenses 28,835 24,797 39,918
Loss from operations (10,885) (11,423) (35,444)
Other (expense), net (2,750) (1,997) (2,560)
-------- -------- --------
Net loss before income taxes
and extraordinary item (13,635) (13,420) (38,004)
Benefit for income taxes (5,045) (4,697) (13,408)
-------- -------- --------
Net loss before extraordinary item (8,590) (8,723) (24,596)
Extraordinary item net of taxes -- -- 2,639
-------- -------- --------
Net loss $ (8,590) $ (8,723) $(21,957)
======== ======== ========
Basic and diluted net loss per share before extraordinary item: $ (0.27) $ (0.27) $ (0.77)
Basic and diluted net earnings per share from extraordinary item: $ -- $ -- $ 0.09
Basic and diluted net loss per share: $ (0.27) $ (0.27) $ (0.68)
Basic and diluted weighted-average common shares outstanding 32,159 31,874 32,111
-------- -------- --------
Other Information (Unaudited)
(in thousands except per share data)
Quarter Ended March 31, Quarter Ended
------------------------- December 31,
2003 2002 2002
-------- -------- -------------
ADDITIONAL INFORMATION - Non-GAAP financial information:
- --------------------------------------------------------
Non-GAAP net loss $ (7,538) $ (8,723) $ (7,764)
-------- -------- --------
Non-GAAP basic and diluted loss per share $ (0.23) $ (0.27) $ (0.24)
THE NON-GAAP FINANCIAL INFORMATION ELIMINATES THE FOLLOWING FROM THE GAAP INFORMATION:
- --------------------------------------------------------------------------------------
Excess, obsolete and warranty inventory charges $ -- $ -- $ 14,223
Other operating expenses -- -- 5,346
Restructuring charges 1,509 -- 5,840
Impairment of equity investment 175 -- 1,523
Extraordinary gain, before tax -- -- (4,223)
Income tax effect (632) -- (8,516)
-------- -------- --------
$ 1,052 $ -- $ 14,193
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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS)
March 31, December 31,
2003 2002
--------- ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 58,302 $ 70,188
Marketable securities 102,519 102,159
Accounts receivable 40,915 43,885
Income tax receivable 14,809 14,720
Inventories 55,952 57,306
Other current assets 5,702 6,828
Deferred income tax assets, net 21,853 17,510
-------- --------
Total current assets 300,052 312,596
Property and equipment, net 40,772 41,178
Deposits and other 4,411 5,181
Goodwill and intangibles, net 86,420 86,601
Deferred debt issuance costs 3,815 4,091
Other assets 6,660 6,086
-------- --------
Total assets $442,130 $455,733
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Trade accounts payable $ 14,556 $ 16,055
Other current liabilities 29,268 31,064
Current portion of capital leases and long-term debt 14,290 15,197
Accrued interest payable on convertible subordinated notes 1,601 2,338
-------- --------
Total current liabilities 59,715 64,654
Long-term Liabilities:
Capital leases and senior borrowings 9,353 10,665
Other long-term liabilities 742 694
Deferred income tax liability, net 8,777 8,663
Convertible subordinated notes payable 187,718 187,718
-------- --------
Total long-term liabilities 206,590 207,740
Total liabilities 266,305 272,394
Stockholders' equity 175,825 183,339
-------- --------
Total liabilities and stockholders' equity $442,130 $455,733
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Three Months Ended March 31,
----------------------------
2003 2002
-------- --------
NET CASH USED IN OPERATING ACTIVITIES $ (4,579) $(10,564)
NET CASH USED IN INVESTING ACTIVITIES (5,460) (24,830)
NET CASH USED IN FINANCING ACTIVITIES (1,981) (2,641)
EFFECT OF CURRENCY TRANSLATION ON CASH 134 (119)
-------- --------
DECREASE IN CASH AND CASH EQUIVALENTS (11,886) (38,154)
CASH AND EQUIVALENTS, beginning of period 70,188 81,955
-------- --------
CASH AND EQUIVALENTS, end of period $ 58,302 $ 43,801
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